PA C-PACE Expansion Opening the Door to Millions of Dollars in Investment in New and Existing Buildings
Multifamily buildings and indoor air quality and resiliency added to list of financeable projects
Harrisburg, PA – Today, Governor Wolf signed into law Senate Bill 635, expanding eligibility for Commercial Property-Assessed Clean Energy (C-PACE) financing to include multifamily commercial buildings, indoor air quality and building resiliency improvements. The bill, SB 635, expands on Act 30 of 2018, which first enabled C-PACE financing in Pennsylvania for commercial buildings in Pennsylvania.
Sponsored by Senator Yudichak, SB 635 extends eligibility to multifamily commercial buildings of 5 or more units, indoor air quality improvements (such as COVID-19 mitigation), and building resiliency improvements. Representative Heffley sponsored the House companion bill, HB 1760.
“We are grateful to Senator Yudichak and Representative Heffley for their sponsorship of expansion bills SB 635 and HB 1670, respectively,” said Emily Schapira, President & CEO of the Philadelphia Energy Authority, Philadelphia’s C-PACE Administrator. “This expansion provides additional opportunities to finance critical new and existing building resilience upgrades, help mitigate the spread of airborne contaminants in indoor environments, and create good paying jobs across Pennsylvania.”
Prior to the expansion, C-PACE financing allowed for investments in energy efficiency, water conservation and renewable energy that are paid back over time through special property assessments. This expansion builds on the existing C-PACE Program to expand the types of projects eligible for financing.
“C-PACE financing can be used for both hard and soft costs associated with constructing new buildings and retrofitting existing ones, making it an invaluable tool for structuring a capital stack for efficient buildings,” said John Costlow, President of the Sustainable Energy Fund, Pennsylvania’s C-PACE Administrator. “We are excited to deploy this tool for upgrades to make the buildings we live and work in safer and healthier for decades to come.”
“We and our members are enthusiastic about the opportunity to expand financing to multifamily buildings and support additional measures. Multifamily property owners have been eager to access C-PACE financing and we expect significant growth in Pennsylvania’s C-PACE market,” said Cliff Kellogg, Executive Director of the C-PACE Alliance, whose members include C-PACE capital providers and transaction experts.
To date, C-PACE has facilitated $88 million of private capital investment in the Commonwealth for more efficient and healthier buildings that are less expensive to operate. C-PACE programs are active in 19 counties throughout Pennsylvania.
“We are excited to deliver policy that helps County governments support resilience efforts and expands C-PACE financing as part of their economic development tools and leverages private dollars. We look forward to continuing to educate and support those considering new C-PACE programs, along with existing C-PACE counties across the Commonwealth,” said Jeaneen Zappa, Executive Director Keystone Energy Efficiency Alliance.
The expansion will take effect in 60 days, contingent on individual counties approving the program expansion in accordance with their local adoption rules.
About Philadelphia Energy Authority
The Philadelphia Energy Authority (PEA) is an independent municipal authority created in 2010 to advance energy affordability and sustainability. PEA has facilitated over $291 million in clean energy projects in Philadelphia since launching the Philadelphia Energy Campaign in 2016, creating more than 2,500 jobs. As Program Administrator, PEA reviews and approves applications, manages the billing and lien processes, engages in market education, and supports the growth of the Philadelphia C-PACE program. For details, visit www.PhiladelphiaCPACE.org.
About Sustainable Energy Fund
Sustainable Energy Fund (SEF), a nonprofit organization, assists energy users in overcoming financial, educational and regulatory barriers to a sustainable energy future. SEF provides a variety of services including financing energy conservation, energy efficiency and renewable energy projects; educating the leaders of today and tomorrow to create a passion for sustainable energy; and representing the interests of energy conservation, energy efficiency and renewable energy in proceedings before the Pennsylvania Public Utility Commission. Visitwww.thesef.org.
About C-PACE Alliance
C-PACE Alliance (CPA) is a coalition of capital providers and technical experts who have invested in or professionally advised the vast majority of capital for C-PACE financing nationally. CPA provides technical assistance and education to state and local governments to drive more investment that makes building more energy efficient and resilient and, in turn, creating jobs and economic development.
About Keystone Energy Efficiency Alliance
Along with our affiliated 70+ business members, the Keystone Energy Efficiency Alliance trade association educates, partners and advocates to collaboratively advance policy that prioritizes and increases deployment, funding and market adoption of energy efficiency — the least-cost energy resource and the largest and fastest-growing industry in the energy sector. Started in 2006, KEEA’s work saves energy, grows the workforce, promotes equity, and decarbonizes buildings.